Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How does this work in excel? Ford Motor Company's current incentives include 3.8 percent APR financing for 36 months or $1,400 cash back on a

How does this work in excel?

image text in transcribed

Ford Motor Company's current incentives include 3.8 percent APR financing for 36 months or $1,400 cash back on a Mustang. Let's assume Suzie Student wants to buy the premium Mustang convertible, which costs $23,000, and she has no down payment other than the cash back from Ford. If she chooses the $1,400 cash back, Suzie can borrow from the VTech Credit Union at 5 8 percent APR for 36 months (Suzie's credit isn't as good as Prof. Finance). What will Suzie Student's monthly payment be under each option? Which option should she choose? If Suzie chooses 3.8 percent APR financing for 36 months to buy the premium Mustang convertible, which costs $23,000 = PMT(33.973047), what will her monthly payment be? (Round to the nearest cent.) If Suzie chooses $1,400 cash back to buy the premium Mustang convertible and borrows $21,600 from the VTech Credit Union at 5.8 percent APR for 36 months how much will her monthly payment be? (Round to the nearest cent) Which option should Suzie Student choose? (Select the best choice below.) Choose low interest rate financing because the monthly payment under this option is lower. Choose cash back financing because the monthly payment under this option is lower

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Investments

Authors: Charles J. Corrado

3rd Edition

0072829192, 978-0072829198

More Books

Students also viewed these Finance questions